Scope for EUR/JPY upside builds, long on close above 125

2016年3月7日125 is strong resistance for EUR/JPY, the pair has slipped below the 125 handle after hitting session highs at 125.23 on the day.

Pair has re-entered channel at 124.44 levels, but is struggling to extend gains beyond 125 handle.

Techs show scope for upside is rising:
- We see a bullish 5-DMA crossover on the 10-DMA
- Daily Stochs and RSI have rolled over from oversold levels and biased higher
- MACD line has shown a bullish crossover on the signal line

We would recommend taking long positions on close above 125, SL: 124.35, TP: 125.55/126

Resistance Levels:

R1: 125

R2: 125.58 (Mar 4th highs)

R3: 125.96 (Feb 19th high)

Support Levels:

S1: 124.37 (5-DMA)

S2: 124 (Psychological level and 10-DMA)

S3: 123.93 (Mar 4th lows)